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Planned Community Association,
Collection-Effective April 30, 2014, HB 2045 gives community associations the
same rights as condominium associations to assess or pursue claims against
buyers in a voluntary conveyance for delinquent assessments owed by sellers.
Similarly, the Board and managing agent need to provide statements on amounts
owed to escrow, realtor and both parties in the sale.
Association Non-Judicial Foreclosure-Effective
April 1, HB 2585 fixes a loophole in the existing statute by allowing
Associations to serve any parties other than the unit owners, which cannot be
other- wise served, by notice of publication and posting in a special proceeding
in the circuit court in order to proceed with a non-judicial foreclosure.
Condominium Projects, Agricultural Uses-SB 2078
clarifies that agricultural uses and activities on lands classified as
agricultural shall not be restricted by any private agreement contained in
condominium project documents, except for a restriction taken to protect
environmental or cultural resources, agricultural leases, utility easements,
and access easements. This Act does not affect rights and duties that matured,
penalties that were incurred, and proceedings that were begun before the
effective date of April 23, 2014.
Condominium, Owners’ Access to Documents &
Records-HB 2401 consolidates into one section the documents, records and
information that must be made available to unit owners or their authorized
agents and specifies that the Association and its managing agent must provide
these no later than 30 days after receipt of a written request. It also gives
the Real Estate Commission powers to investigate, issue cease and desist
orders, enjoin and impose penalties against violations of this provision. The
measure went into effect July 1.
Condominium, Cumulative Voting, Board
Directors-HB 2482 clarifies the process for cumulative voting for an election
at an association meeting, amends the definition of “majority” or “majority of
the unit owners” and makes corresponding technical amendments associated with
this amended definition. It also
clarifies that directors who are appointed to fill vacancies on a board of
directors must stand for election at the next annual meeting or a duly noticed
special meeting. It also clarifies that approval of a lease rent collection
system and an annual audit of an association’s financial accounts and cash
balance may be waived at an association meeting by a vote of a majority of all
the unit owners if the association is composed of less than twenty owners. The
measure went into effect July 1.
Condominium, Unpaid Assessment, Board Election-SB
2483 clarifies that a condominium association’s lien is subordinate to real
property taxes, rather than all taxes. It also clarifies that a condominium
association may assess unpaid common maintenance fees against any purchaser who
purchases a delinquent unit in a foreclosure.
It finally specifies that a condominium board may only fill board
vacancies temporarily until a duly noticed election. The measure went into
effect July 1.
Private Guards, Continuing Education-SB 2486
amends various provisions relating to private guards and individuals acting in
a guard capacity; reduces the continuing education requirement to four hours
every two years; delays the continuing education requirement to prior to the
June 30, 2014, renewal cycle; and makes permanent the registration and
licensure requirements for private guards and individuals acting in a guard
capacity by repealing the sunset date of Act 208, Sessions Laws of Hawaii 2010.
The measure went into effect June 29.
Solar Energy Device, Warranty, Contractors-SB
2657 requires a contractor that installs a solar energy device to notify the
private entity that installation might void the roofing warranties or
guarantees. Unless the private entity forgoes the roofing warranty or
guarantee, a contractor that installs a solar energy device must obtain written
approval from the roof manufacturer and follow written instructions for
waterproofing roof penetrations from the roof manufacturer. A roofing
contractor that waterproofs roof penetrations related to the installation of a
solar energy device must honor the roof warranty or guarantee, provided that if
either the roofing contractor’s guaranty or the roofing manufacturer’s warranty
is no longer in effect, the contractor who installs the solar energy device and
waterproofs the penetration shall apply the contractor’s or lessor’s standard
labor and workmanship warranty. The measure went into immediate effect.
The following new laws do not directly relate to
Associations but they impact all homeowners or legal proceedings. Directors and
property managers should know about these when their associations are involved
in a relevant transaction or legal proceeding.
Residential Landlord-Tenant Code, Eviction,
Medical Marijuana-Effective November 1, HB 1503 voids any rental agreement
provision that allows for eviction of a tenant who has a valid certificate for
the medical use of marijuana unless (1) the rental agreement allows for
eviction for smoking tobacco and the medical marijuana is used by means of
smoking; or (2) the project documents of the condominium or community
association prohibit the medical use of marijuana.
Real Estate Appraisals, Arbitration Awards-HB
1830 requires a licensed or certified real estate appraiser, who is named or
appointed as an arbitrator in a proceeding, to determine the fair market value,
fair market rental or fair and reasonable rent of real property, shall record
all arbitration awards, records of awards, and any supplementary, dissenting or
explanatory opinions in the Bureau of Conveyances as public records. This bill became law without the Governor’s
signature on April 30, 2014.
Judgment Liens, Collection-Effective July 1, HB
1579 clarifies that money judgments are considered valid liens against all real
property, including registered property, when recorded in the Bureau of
District Court Jurisdiction, Collection:
Effective April 17, HB 1846 provides the maximum claim amount in civil cases
within the district court’s jurisdiction increased from $25,000 to $40,000.
Service of Process, Collection-SB 2072 supersedes
a 2013 appellate case decision on serving a summons and specifies that service
by certified, registered, or express mail sent to the addressee only as ordered
by the court upon the defendant within the state shall be valid for civil
actions in the nature of assumpsit if a reasonable attempt at personal delivery
has not been successful.